Hong Nam-ki "Rapid Execution of 20.8 Billion KRW Quarantine Budget... Contingency Fund Support if Insufficient" (Comprehensive)

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at an emergency meeting of related ministers held on the 28th at the video conference room of the Government Seoul Office in Jongno-gu, Seoul, to review support for quarantine budgets related to the novel coronavirus and minimize economic impact. Photo by Moon Ho-nam munonam@

[Asia Economy reporters Kwangho Lee and Sehee Jang] The government will promptly execute a quarantine response budget of 20.8 billion KRW in relation to the spread of the novel coronavirus infection (Wuhan pneumonia) and, if insufficient, will support the 2 trillion KRW contingency fund allocated in this year's budget. Regarding the financial market situation, the government plans to continue close monitoring.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held an emergency meeting with related ministers on the morning of the 28th at the Government Seoul Office in Jongno-gu, Seoul, to review support for the quarantine budget related to the novel coronavirus and minimize economic impact. He stated, "We will promptly execute a total of 20.8 billion KRW in quarantine response budgets, including 6.7 billion KRW for establishing and operating the quarantine response system, 5.2 billion KRW for quarantine and diagnosis, and 2.9 billion KRW for isolation treatment, all reflected in this year's budget, to actively support proactive quarantine."

Deputy Prime Minister Hong explained, "If the already secured budget is insufficient or additional expenses arise, we will support the 2 trillion KRW contingency fund allocated in this year's budget to ensure there are no setbacks in terms of budget." He added, "Since the 1 billion KRW budget for dispatching chartered flights to protect overseas nationals is already included in the budget, we are preparing to execute it immediately once the decision to dispatch chartered flights is made."

The meeting also discussed the ripple effects on domestic and international financial markets and future response measures. The government plans to thoroughly examine the potential impact on the real economy and focus on minimizing negative effects.

Deputy Prime Minister Hong said, "The impact on domestic economic activities such as domestic demand is still limited, and it is necessary to observe future developments more closely." He mentioned, "Referring to past cases such as SARS in 2003 and MERS in 2015, we will thoroughly analyze the impact on domestic demand sectors like tourism and services by scenario and implement necessary measures."

Regarding domestic and international financial markets, he noted, "Risk-off sentiment has increased, leading to expanded volatility." Since the 21st, preference for safe assets has continued, causing declines in global stock prices and major government bond yields in China, the U.S., and Europe, while safe-haven currencies like the dollar and yen strengthened, and emerging market currencies such as the yuan weakened.

Deputy Prime Minister Hong emphasized, "Considering the resilience of our financial markets and solid external soundness, it is necessary to be cautious about excessive concerns regarding the impact on financial markets." He added, "If market instability expands, we will proactively, swiftly, and accurately implement market stabilization measures according to the contingency plan prepared in advance."

Meanwhile, according to the National Health Commission of China, as of 8 p.m. on the 27th, there have been 81 deaths and 2,840 confirmed cases in China. In South Korea, four confirmed cases have been reported so far. The government has raised the infectious disease crisis alert level from 'caution' to 'warning.'